Tom's Hardware · Jul 6, 2026 15:39 UTC

Microsoft 'resets' Xbox by cutting 3,200 jobs this year, divesting five game studios — firm cites 'margins that are 3-10x lower than comparable platform and publishing businesses'

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Microsoft 'resets' Xbox by cutting 3,200 jobs this year, divesting five game studios — firm cites 'margins that are 3-10x lower than comparable platform and publishing businesses'

Summary

Xbox CEO Asha Sharma announced that Microsoft's gaming division will cut 3,200 jobs throughout FY27 and is spinning out studios but not canceling any games.

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